Hovid-WB broke above its rising 'horizontal' resistance at RM0.20 three days ago. The share also broke above its horizontal resistance at RM0.38 at the same time.
Chart 1: Hovid-WB's daily chart as at July 9, 2014 (Source: Tradesignum)
Chart 2: Hovid's daily chart as at July 9, 2014 (Source: Tradesignum)
Based on technical breakout, Hovid & Hovid-WB could be a good trading BUY.
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Hovid & Hovid-WB.
2 comments:
Hi sir Alex ! Personally, i follow you alot. I like your ways and style of reading charts. May i ask for your prudent opinion on hibiscus petroleum? Cause I think the market is very volatile now... Volatile + hibiscus you know...
Hi sim yu xin
I am very cautious with SPACs. Record in US shows that most investment in SPACs result in losses.
Charts can only tell us the existing demand & supply on a stock. In crazy time, charts can be unreliable. Traders can use charts to make money. When the good time is over, the true value will surface.
I have serious doubt that our SPACs will do differently from those in US. Ask yourself this question whenever you read about a SPAC buying into a venture: Why would the seller dispose of his venture if it is good?
You may say, it is a seller-and-buyer market. In most instances, that's true. But, not when the buyers are SPACs. SPACs are at a distinct disadvantage; they are under pressure to buy within a certain time-frame. If they failed to do that, the SPACs will be wound up and the fund returns to shareholders. No promoters will accept that. So, by hook or by crook, they will buy something; anything to stay in the game.
SPACs are solutions (money) looking for a problem (business venture). With time running against you, every prospective business venture would begin to look like a solution to your problem.
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